Page 23 - Mazars Central and Eastern European tax guide 2023

Greece VAT and other indirect taxes benefits in cash or in kind granted, such as the private
usage of a company car, a cost-of-living allowance and
The standard VAT rate in Greece is 24%, while the reduced other benefits over EUR 300 per fiscal year. In Greece,
rate is 13% (e.g., for agricultural services, accommodation personal income tax is subject to a progressive tax
services, certain types of foodstuffs) and 6% (e.g., journals, rate which ranges from 9% to 44%. Additionally, tax
books, medicines, supply of electricity and gas). VAT-
Mazars Accounting Tax exempt activities include financial and banking services, payable on employment income is reduced by a family
tax allowance from EUR 777 to EUR 1,340 under certain
Single Member P.C. insurance, medical services, education (under conditions). conditions. For individuals, real estate income is taxed
14 Amfitheas Ave, 17564, Pursuant to the provisions of art.10 par.1 of Law at a progressive rate of 15% to 45%.
Palaio Faliro, Athens – Greece 5000/2022, reduced VAT rates were expanded to several
Phone: +30 2106993749 products and services (non-alcohol beverages, cinema Active incomes fall under the scope of the SSC system.
Fax: +30 2106983708 tickets, transportation of individuals and their luggage) The vast majority of Greek employees have been covered
www.mazars.gr between 1 June 2020 and 30 June 2023. by the Social Insurance Institution known as E.F.K.A. since
1 January 2017. Social security contributions are calculated
As for other indirect taxes, Greece applies a flat stamp duty based on the actual salary of the employee. The applicable
rate of 2.4% or 3.6% to certain transactions excluding VAT, rates for full time employees are 22.29% for employers
such as non-residential rents, loans, etc.
Corporate taxes and other direct taxes to a tax rate of 15% and the corresponding rate for royalties and 13.87% for employees. For part-timers, the rates are
is 20%. Greece has incorporated 57 treaties on the Personal income tax / Social security system also the same effective 1st of January 2023. Social Security
A flat corporate income tax rate of 22% is applied avoidance of double taxation. Since a DTT is in force, the grants benefits in the case of unemployment, sickness,
to resident corporations for fiscal years 2021 onwards. above-listed rates can be reduced. With adoption of the Pursuant to domestic tax law, as taxable employment disability, retirement and death. For calculation purposes,
Non-resident corporations are taxed in Greece on any EU Parent Subsidiary Directive, under certain conditions income is considered to be any remuneration received the upper limit of the social security contributions
income generated in Greece. The relative tax rate applies there is no withholding tax on dividends, interests and by an employee within an employment context including is defined by a gross salary of EUR 7,126.94.
after the deduction of business costs, depreciations and royalties paid on EU (including Greece) intragroup
provisions for bad debts. Major tax adjustments and non- transactions.
deductible items are payments out of the banking system, Wage related taxes in Greece Minimum wage Average wage
transfer pricing adjustments, personal consumption A real estate property tax applies in cases of immovable in private sector
expenditure, bad debts without legal actions, payments property ownership, while legal entities holding real in EUR in EUR
to low tax rate jurisdictions, non-paid SSC and thin cap estate located in Greece may be additionally charged with 780 1,445
interests to the extent that they are over 30% of EBITDA the Special Estate Tax, imposed at a rate of 15% on the
and EUR 3 million. Greek corporations are also subject objective value of the property if the beneficial owner Total wage cost* 954 122% 1,767 122%
to annual business tax up to EUR 1,000, irrespective or the individual shareholder is not known to the Greek Employer's social security contribution** 174 22.29% 322 22.29%
of their profitability. Greek Companies are subject to tax authorities. A list of exemptions is provided under certain
prepayment equal to 80% of the tax corresponding to the conditions. Capital gains from shares and immovable Gross salary 780 100% 1,445 100%
revenues of the tax year for which the return is filed. For property are taxed as normal business profits (22%) for Personal income tax*** – – 74 9%/22%/28%/36%/44%
newly established companies, the prepayment is reduced corporations and at a flat rate of 15% for individuals. For Special Solidarity Contribution **** – – –
to 50% for the first three years of operations. individuals, the 15% for capital gains arising from the Employees' contributions 108 13.87% 200 13.87%
sale of immovable property has been postponed until
As of 1 January 2021, the withholding tax rate for dividends 31 December 2024. Net salary 672 86% 1,171 81%
distribution is reduced to 5% for both individuals and the
shareholders of legal entities. Interest payment is subject * Per payroll period (there are 14 payroll periods per year).
** Most common social security contributions rate (for full timers) regarding usual employment properties.
Transfer pricing in Greece VAT options in Applicable / limits *** A tax reduction is provided for the taxpayer based on the number of dependents in conjunction with the total taxable income.
**** Not applicable for 2023.
Arm's length principle ü Since 1994 Greece

Documentation liability ü Since 2008 Distance selling EUR 10,000/year
APA ü Since 2014 Call-off stock ü
Penalty VAT group registration No

For inaccuracy/ Cash accounting – yearly Optional for small companies
incompleteness; amount in EUR (approx.) up to 2m turnover.
lack of documentation ü 1% of TP transactions
(min EUR 500–EUR 2,000). Import VAT deferment ü
B2B sales for laptops- tablets- cell
For non-submission, fine Local reverse charge phones - game consoles under
of 1% of TP transactions conditions.
(min EUR 2,500, max. EUR
tax shortage ü 10,000). Non-existence Option for taxation
of documentation file, letting of real estate Optional on business rents.
penalty up to 20,000.
Direct or indirect control supply of used real estate No
or management Not applicable for taxable persons.
Related parties 33% <
dependence or exercise However, small businesses with Nikolaos Kasouridis
of decisive influence. a turnover up to EUR 10,000 may Tax Partner
VAT registration
Safe harbours No – threshold be exempted from VAT registration. Phone: +30 210 6993749
Also, the threshold is set at EUR
Level of attention paid by Tax 10,000 for pan-EU digital services Mobile: +30 6937050114
Authority 10/10 and goods as a part of OSS return. E-mail: nikos.kasouridis@mazars.gr
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